Market Forecast: Upcoming Q3 Earnings, FII Activity, and Economic Indicators Set to Influence Next Week
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Mumbai, Jan 5 (NationPress) The market forecast for the upcoming week will be influenced by Q3 earnings, crude oil prices, foreign institutional investors (FIIs), and domestic economic indicators, as per expert analysis on Sunday.
Quarterly earnings for the October-December timeframe (Q3) will commence at the start of next week. Major IT firms such as TCS and Tata Elxsi are set to disclose their financial results on January 9, 2025.
Additionally, the government will unveil the initial advance estimates of GDP for the fiscal year (FY) 2024-25 on Tuesday.
In the previous week, the Indian stock market experienced a significant upswing. The Nifty increased by 191 points or 0.80 percent, closing at 24,004, while the Sensex gained 524 points or 0.67 percent, finishing at 79,223. During this timeframe, the performance of smallcap and midcap stocks outperformed that of largecap stocks. This indicates that the bullish sentiment remains strong in the stock market in light of the New Year.
In sector performance, Nifty Auto led the gains with a 4 percent weekly increase, while Nifty Realty lagged behind. Global market activity remained subdued due to the Christmas and year-end festivities, with no notable economic data releases.
With the Christmas and New Year holiday period coming to a close, market activity is anticipated to stabilize next week. Full participation from both institutional and retail investors could amplify market fluctuations, marking a crucial time for traders and investors alike, stated Pravesh Gour, Senior Technical Analyst at Swastika Investmart.
During the trading sessions from December 30 to January 3, FIIs offloaded shares worth Rs 11,041 crore in the cash market, while domestic institutional investors (DIIs) injected Rs 9,253 crore.
Puneet Singhania, Director at Master Trust Group, commented: "Nifty has established a solid base in the 23,500–23,700 range, consolidating there for ten sessions, indicating a potential bottom formation and suggesting a reversal. The sustained closing above the critical psychological level of 24,000 enhances the bullish sentiment, with prices favoring a buy-on-dips strategy offering a favorable risk-reward ratio."
